Applied Signal Technology, Inc.
Opens New Office Near Wright-Patterson Air Force Base

SUNNYVALE, California, September 17, 2008 – Applied Signal Technology, Inc. (NASDAQ: APSG) (AST), a market leader in SIGINT innovation, has opened a new office in the Dayton, Ohio, area to provide dedicated programmatic, engineering, and logistics support for programs at Wright-Patterson Air Force Base. Applied Signal Technology has teamed with Ball Aerospace to work on critical Measurement and Signature Intelligence (MASINT) projects conducted at the National Air and Space Intelligence Center (NASIC).

"AST is excited to bring its extensive experience in intelligence signal processing and analysis of sensor information to the Dayton area," said William Van Vleet, Chief Executive Officer of Applied Signal Technology. He continued, "The Dayton office will help us build a stronger presence in the Midwest region. We look forward to being a good civic leader and tapping into the area's skilled workforce to fill positions for our new office."

AST will celebrate the grand opening on September 25, 2008, from 4:00 p.m. to 7:00 p.m. to introduce the new office to local elected officials, teammates, and clients. The office is located at 2970 Presidential Drive, Suite 100, Fairborn, OH 45324.

About Applied Signal Technology, Inc.

Applied Signal Technology, Inc. provides advanced intelligence, surveillance, and reconnaissance (ISR) products, systems, and services to enhance global security. For further information about Applied Signal Technology, visit our website at www.appsig.com.